The huge problem now is getting financing as Fannie Mae has lowered their allowed limit of financed investment properties from 10 to only 4. Most banks follow these standards but a few banks called "Portfolio Lenders" don't. Here is the list of bank that I have contacted that would not take my application because I have four or more rental properties:
These banks are able to lend past the Fannie Mae limit of 4:
- Washington Federal Savings (currently requires 25% down)
- Countrywide Financial (currently requires 40% down for non Fannie Mae properties)
So now is the time to get private financing from friends, family, business associates, or via business lines of credit. I am always looking for additional sources of funds to invest and can pay 1-2% per month. Not only a great return on your investment, the money is also backed by an asset that I have purchase at way below market value.